Emerging Asia Economics Update
India's Reserve Bank set to tighten further
The Reserve Bank of India (RBI) today raised the repo rate by 25bp, which was in line with expectations. It lifted the reverse repo rate by 50bp as well, which surprised the consensus but matched our view. The RBI is not quite finished but we have revised down our forecast and now anticipate that policy rates will climb only another 50bp over the next 6 months.
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